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Do Active Military Pay Taxes

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Do Active Military Pay Taxes

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SOI Tax Stats - Historical Data Tables

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All Historical tables are available in Microsoft Excel file format. 

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Tables by Number:

1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 (expanded version), 13 (expanded version), 14a, 14b, 15, 16 (expanded version), 17, 18, 19 , 20, 21, 22a, 22b, 23, 24.

 


Table Descriptions

Table 1.  Individual Income Tax Returns: Selected Income and Tax Items.

Table 2.  Individual Income and Tax Data, by State and Size of Adjusted Gross Income.

Table 3.  Number of Individual Income Tax Returns, Income, Exemptions and Deductions, Tax, and Average Tax, by Size of Adjusted Gross Income.

Table 4.  Comparison of Personal Income in the National Income and Product Accounts (NIPA) with Adjusted Gross Income (AGI).  (Discontinued)

Table 5.  Personal Income and Total Adjusted Gross Income Based on Individual Income Tax Returns per National Income and Product Accounts (NIPA).  (Discontinued)

Table 6.  Total Adjusted Gross Income Estimated from National Income and Product Accounts (NIPA) and as Reported on Individual Income Tax Returns per SOI.  (Discontinued)

Table 7.  Standard, Itemized, and Total Deductions Reported on Individual Income Tax Returns.

Table 8.  Personal Income per National Income and Product Accounts (NIPA), and Taxable Income and Individual Income Tax per SOI.

Table 9.  Number of Individual Income Tax Returns, by Type of Tax Settlement.

Table 10.  Nonfarm Sole Proprietorship Returns: Selected Income Statement Items for Specified Income.

Table 11.  Partnership Returns: Selected Balance Sheet and Income Statement Items for Specified Income Years.

Table 12.  Number of Business Income Tax Returns, by Size of Business for Income Years, 1990–2009. Expanded Version.

Table 13.  Corporation Income Tax Returns: Balance Sheet, Income Statement, and Tax Items for Income Years, 1990–2009. Expanded Version.

Table 14a.  Corporation Income Tax Returns: Selected Balance Sheet, Income Statement, and Tax Items, by Standard Industrial Classification (SIC) Industrial Division.

Table 14b.  Corporation Income Tax Returns: Selected Balance Sheet, Income Statement, and Tax Items, by North American Industry Classification System (NAICS) Industrial Sector.

Table 15.  Corporation Profits Before Tax per National Income and Product Accounts (NIPA) and per SOI, and Income Subject to Tax per SOI, Income Years 1960–2007.

Table 16.  Nonprofit Charitable Organization and Domestic Private Foundation Information Returns, and Exempt Organization Business Income Tax Returns: Selected Financial Data. Expanded Version.

Table 17.  Taxable Estate Tax Returns as a Percentage of Adult Deaths, Selected Years of Death, 1934–2008.

Table 18.  Treasury Department Gross Tax Collections: Amount Collected by Quarter and Fiscal Year. (Discontinued)

Table 19.  Internal Revenue Tax Refunds: Amount Refunded by Quarter and Fiscal Year. (Discontinued)

Table 20.  Federal Excise Taxes Reported to or Collected by the Internal Revenue Service, Alcohol and Tobacco Tax and Trade Bureau, and Customs Service, by Type of Excise Tax.

Table 21.  Selected Returns and Forms Filed or To Be Filed by Type During Specified Calendar Years.

Table 22a.  Taxpayers Receiving Assistance.

Table 22b.  IRS Assistance for Individual Taxpayers.

Appendix to Selected Historical and Other Data Tables

Table 23.  U.S. Individual Income Tax: Personal Exemptions and Lowest and Highest Bracket Tax Rates, and Tax Base for Regular Tax.

Table 24.  U.S. Corporation Income Tax: Tax Brackets and Rates.

 


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Page Last Reviewed or Updated: 19-Jun-2013

The Do Active Military Pay Taxes

Do active military pay taxes Publication 529 - Main Content Table of Contents Deductions Subject to the 2% LimitUnreimbursed Employee Expenses Tax Preparation Fees Other Expenses Deductions Not Subject to the 2% LimitList of Deductions Nondeductible ExpensesList of Nondeductible Expenses How To ReportWho can use Form 2106-EZ. Do active military pay taxes Computer used in a home office. Do active military pay taxes Example How To Get Tax HelpLow Income Taxpayer Clinics Deductions Subject to the 2% Limit You can deduct certain expenses as miscellaneous itemized deductions on Schedule A (Form 1040 or Form 1040NR). Do active military pay taxes You can claim the amount of expenses that is more than 2% of your adjusted gross income. Do active military pay taxes You figure your deduction on Schedule A by subtracting 2% of your adjusted gross income from the total amount of these expenses. Do active military pay taxes Your adjusted gross income is the amount on Form 1040, line 38, or Form 1040NR, line 37. Do active military pay taxes Generally, you apply the 2% limit after you apply any other deduction limit. Do active military pay taxes For example, you apply the 50% (or 80%) limit on business-related meals and entertainment (discussed later under Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging ) before you apply the 2% limit. Do active military pay taxes Deductions subject to the 2% limit are discussed in the following three categories. Do active military pay taxes Unreimbursed employee expenses (Schedule A (Form 1040), line 21 or Schedule A (Form 1040NR), line 7). Do active military pay taxes Tax preparation fees (Schedule A (Form 1040), line 22 or Schedule A (Form 1040NR), line 8). Do active military pay taxes Other expenses (Schedule A (Form 1040), line 23 or Schedule A (Form 1040NR), line 9). Do active military pay taxes Unreimbursed Employee Expenses Generally, the following expenses are deducted on Schedule A (Form 1040), line 21, or Schedule A (Form 1040NR), line 7. Do active military pay taxes You can deduct only unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary and necessary. Do active military pay taxes An expense is ordinary if it is common and accepted in your trade, business, or profession. Do active military pay taxes An expense is necessary if it is appropriate and helpful to your business. Do active military pay taxes An expense does not have to be required to be considered necessary. Do active military pay taxes You may be able to deduct the following items as unreimbursed employee expenses. Do active military pay taxes Business bad debt of an employee. Do active military pay taxes Business liability insurance premiums. Do active military pay taxes Damages paid to a former employer for breach of an employment contract. Do active military pay taxes Depreciation on a computer your employer requires you to use in your work. Do active military pay taxes Dues to a chamber of commerce if membership helps you do your job. Do active military pay taxes Dues to professional societies. Do active military pay taxes Educator expenses. Do active military pay taxes Home office or part of your home used regularly and exclusively in your work. Do active military pay taxes Job search expenses in your present occupation. Do active military pay taxes Laboratory breakage fees. Do active military pay taxes Legal fees related to your job. Do active military pay taxes Licenses and regulatory fees. Do active military pay taxes Malpractice insurance premiums. Do active military pay taxes Medical examinations required by an employer. Do active military pay taxes Occupational taxes. Do active military pay taxes Passport for a business trip. Do active military pay taxes Repayment of an income aid payment received under an employer's plan. Do active military pay taxes Research expenses of a college professor. Do active military pay taxes Rural mail carriers' vehicle expenses. Do active military pay taxes Subscriptions to professional journals and trade magazines related to your work. Do active military pay taxes Tools and supplies used in your work. Do active military pay taxes Travel, transportation, meals, entertainment, gifts, and local lodging related to your work. Do active military pay taxes Union dues and expenses. Do active military pay taxes Work clothes and uniforms if required and not suitable for everyday use. Do active military pay taxes Work-related education. Do active military pay taxes Business Bad Debt A business bad debt is a loss from a debt created or acquired in your trade or business. Do active military pay taxes Any other worthless debt is a business bad debt only if there is a very close relationship between the debt and your trade or business when the debt becomes worthless. Do active military pay taxes A debt has a very close relationship to your trade or business of being an employee if your main motive for incurring the debt is a business reason. Do active military pay taxes Example. Do active military pay taxes You make a bona fide loan to the corporation you work for. Do active military pay taxes It fails to pay you back. Do active military pay taxes You had to make the loan in order to keep your job. Do active military pay taxes You have a business bad debt as an employee. Do active military pay taxes More information. Do active military pay taxes   For more information on business bad debts, see chapter 10 in Publication 535. Do active military pay taxes For information on nonbusiness bad debts, see chapter 4 in Publication 550, Investment Income and Expenses. Do active military pay taxes Business Liability Insurance You can deduct insurance premiums you paid for protection against personal liability for wrongful acts on the job. Do active military pay taxes Damages for Breach of Employment Contract If you break an employment contract, you can deduct damages you pay your former employer if the damages are attributable to the pay you received from that employer. Do active military pay taxes Depreciation on Computers You can claim a depreciation deduction for a computer that you use in your work as an employee if its use is: For the convenience of your employer, and Required as a condition of your employment. Do active military pay taxes For the convenience of your employer. Do active military pay taxes   This means that your use of the computer is for a substantial business reason of your employer. Do active military pay taxes You must consider all facts in making this determination. Do active military pay taxes Use of your computer during your regular working hours to carry on your employer's business is generally for the convenience of your employer. Do active military pay taxes Required as a condition of your employment. Do active military pay taxes   This means that you cannot properly perform your duties without the computer. Do active military pay taxes Whether you can properly perform your duties without it depends on all the facts and circumstances. Do active military pay taxes It is not necessary that your employer explicitly requires you to use your computer. Do active military pay taxes But neither is it enough that your employer merely states that your use of the item is a condition of your employment. Do active military pay taxes Example. Do active military pay taxes You are an engineer with an engineering firm. Do active military pay taxes You occasionally take work home at night rather than work late at the office. Do active military pay taxes You own and use a computer that is similar to the one you use at the office to complete your work at home. Do active military pay taxes Since your use of the computer is not for the convenience of your employer and is not required as a condition of your employment, you cannot claim a depreciation deduction for it. Do active military pay taxes Which depreciation method to use. Do active military pay taxes   The depreciation method you use depends on whether you meet the more-than-50%-use test. Do active military pay taxes More-than-50%-use test met. Do active military pay taxes   You meet this test if you use the computer more than 50% in your work. Do active military pay taxes If you meet this test, you can claim accelerated depreciation under the General Depreciation System (GDS). Do active military pay taxes In addition, you may be able to take the section 179 deduction for the year you place the item in service. Do active military pay taxes More-than-50%-use test not met. Do active military pay taxes   If you do not meet the more-than-50%-use test, you are limited to the straight line method of depreciation under the Alternative Depreciation System (ADS). Do active military pay taxes You also cannot claim the section 179 deduction. Do active military pay taxes (But if you use your computer in a home office, see the exception below. Do active military pay taxes ) Investment use. Do active military pay taxes   Your use of a computer in connection with investments (described later under Other Expenses ) does not count as use in your work. Do active military pay taxes However, you can combine your investment use with your work use in figuring your depreciation deduction. Do active military pay taxes Exception for computer used in a home office. Do active military pay taxes   The more-than-50%-use test does not apply to a computer used only in a part of your home that meets the requirements described later under Home Office . Do active military pay taxes You can claim accelerated depreciation using GDS for a computer used in a qualifying home office, even if you do not use it more than 50% in your work. Do active military pay taxes You also may be able to take a section 179 deduction for the year you place the computer in service. Do active military pay taxes See Computer used in a home office under How To Report, later. Do active military pay taxes More information. Do active military pay taxes   For more information on depreciation and the section 179 deduction for computers and other items used in a home office, see Business Furniture and Equipment in Publication 587. Do active military pay taxes Publication 946 has detailed information about the section 179 deduction and depreciation deductions using GDS and ADS. Do active military pay taxes Reporting your depreciation deduction. Do active military pay taxes    See How To Report, later, for information about reporting a deduction for depreciation. Do active military pay taxes You must keep records to prove your percentage of business and investment use. Do active military pay taxes Dues to Chambers of Commerce and Professional Societies You may be able to deduct dues paid to professional organizations (such as bar associations and medical associations) and to chambers of commerce and similar organizations, if membership helps you carry out the duties of your job. Do active military pay taxes Similar organizations include: Boards of trade, Business leagues, Civic or public service organizations, Real estate boards, and Trade associations. Do active military pay taxes Lobbying and political activities. Do active military pay taxes    You may not be able to deduct that part of your dues that is for certain lobbying and political activities. Do active military pay taxes See Lobbying Expenses under Nondeductible Expenses, later. Do active military pay taxes Educator Expenses If you were an eligible educator in 2013, you can deduct up to $250 of qualified expenses you paid in 2013 as an adjustment to gross income on Form 1040, line 23, rather than as a miscellaneous itemized deduction. Do active military pay taxes If you file Form 1040A, you can deduct these expenses on line 16. Do active military pay taxes If you and your spouse are filing jointly and both of you were eligible educators, the maximum deduction is $500. Do active military pay taxes However, neither spouse can deduct more than $250 of his or her qualified expenses. Do active military pay taxes Eligible educator. Do active military pay taxes   An eligible educator is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide in school for at least 900 hours during a school year. Do active military pay taxes Qualified expenses. Do active military pay taxes   Qualified expenses include ordinary and necessary expenses paid in connection with books, supplies, equipment (including computer equipment, software, and services), and other materials used in the classroom. Do active military pay taxes An ordinary expense is one that is common and accepted in your educational field. Do active military pay taxes A necessary expense is one that is helpful and appropriate for your profession as an educator. Do active military pay taxes An expense does not have to be required to be considered necessary. Do active military pay taxes   Qualified expenses do not include expenses for home schooling or for nonathletic supplies for courses in health or physical education. Do active military pay taxes You must reduce your qualified expenses by the following amounts. Do active military pay taxes Excludable U. Do active military pay taxes S. Do active military pay taxes series EE and I savings bond interest from Form 8815. Do active military pay taxes Nontaxable qualified state tuition program earnings. Do active military pay taxes Nontaxable earnings from Coverdell education savings accounts. Do active military pay taxes Any reimbursements you received for those expenses that were not reported to you on your Form W-2, box 1. Do active military pay taxes Educator expenses over limit. Do active military pay taxes   If you were an educator in 2013 and you had qualified expenses that you cannot take as an adjustment to gross income, you can deduct the rest as an itemized deduction subject to the 2% limit. Do active military pay taxes Home Office If you use a part of your home regularly and exclusively for business purposes, you may be able to deduct a part of the operating expenses and depreciation of your home. Do active military pay taxes You can claim this deduction for the business use of a part of your home only if you use that part of your home regularly and exclusively: As your principal place of business for any trade or business, As a place to meet or deal with your patients, clients, or customers in the normal course of your trade or business, or In the case of a separate structure not attached to your home, in connection with your trade or business. Do active military pay taxes The regular and exclusive business use must be for the convenience of your employer and not just appropriate and helpful in your job. Do active military pay taxes Principal place of business. Do active military pay taxes   If you have more than one place of business, the business part of your home is your principal place of business if: You use it regularly and exclusively for administrative or management activities of your trade or business, and You have no other fixed location where you conduct substantial administrative or management activities of your trade or business. Do active military pay taxes   Otherwise, the location of your principal place of business generally depends on the relative importance of the activities performed at each location and the time spent at each location. Do active military pay taxes You should keep records that will give the information needed to figure the deduction according to these rules. Do active military pay taxes Also keep canceled checks, substitute checks, or account statements and receipts of the expenses paid to prove the deductions you claim. Do active military pay taxes More information. Do active military pay taxes   See Publication 587 for more detailed information and a worksheet for figuring the deduction. Do active military pay taxes Job Search Expenses You can deduct certain expenses you have in looking for a new job in your present occupation, even if you do not get a new job. Do active military pay taxes You cannot deduct these expenses if: You are looking for a job in a new occupation, There was a substantial break between the ending of your last job and your looking for a new one, or You are looking for a job for the first time. Do active military pay taxes Employment and outplacement agency fees. Do active military pay taxes    You can deduct employment and outplacement agency fees you pay in looking for a new job in your present occupation. Do active military pay taxes Employer pays you back. Do active military pay taxes   If, in a later year, your employer pays you back for employment agency fees, you must include the amount you receive in your gross income up to the amount of your tax benefit in the earlier year. Do active military pay taxes See Recoveries in Publication 525. Do active military pay taxes Employer pays the employment agency. Do active military pay taxes   If your employer pays the fees directly to the employment agency and you are not responsible for them, you do not include them in your gross income. Do active military pay taxes Résumé. Do active military pay taxes   You can deduct amounts you spend for preparing and mailing copies of a résumé to prospective employers if you are looking for a new job in your present occupation. Do active military pay taxes Travel and transportation expenses. Do active military pay taxes   If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. Do active military pay taxes You can deduct the travel expenses if the trip is primarily to look for a new job. Do active military pay taxes The amount of time you spend on personal activity compared to the amount of time you spend in looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job. Do active military pay taxes   Even if you cannot deduct the travel expenses to and from an area, you can deduct the expenses of looking for a new job in your present occupation while in the area. Do active military pay taxes    You can choose to use the standard mileage rate to figure your car expenses. Do active military pay taxes The 2013 rate for business use of a vehicle is 56½ cents per mile. Do active military pay taxes See Publication 463 for more information on travel and car expenses. Do active military pay taxes Legal Fees You can deduct legal fees related to doing or keeping your job. Do active military pay taxes Licenses and Regulatory Fees You can deduct the amount you pay each year to state or local governments for licenses and regulatory fees for your trade, business, or profession. Do active military pay taxes Occupational Taxes You can deduct an occupational tax charged at a flat rate by a locality for the privilege of working or conducting a business in the locality. Do active military pay taxes If you are an employee, you can claim occupational taxes only as a miscellaneous deduction subject to the 2% limit; you cannot claim them as a deduction for taxes elsewhere on your return. Do active military pay taxes Repayment of Income Aid Payment An “income aid payment” is one that is received under an employer's plan to aid employees who lose their jobs because of lack of work. Do active military pay taxes If you repay a lump-sum income aid payment that you received and included in income in an earlier year, you can deduct the repayment. Do active military pay taxes Research Expenses of a College Professor If you are a college professor, you can deduct your research expenses, including travel expenses, for teaching, lecturing, or writing and publishing on subjects that relate directly to your teaching duties. Do active military pay taxes You must have undertaken the research as a means of carrying out the duties expected of a professor and without expectation of profit apart from salary. Do active military pay taxes However, you cannot deduct the cost of travel as a form of education. Do active military pay taxes Rural Mail Carriers' Vehicle Expenses If your expenses to use a vehicle in performing services as a rural mail carrier are more than the amount of your reimbursements, you can deduct the unreimbursed expenses. Do active military pay taxes See chapter 4 of Publication 463 for more information. Do active military pay taxes Tools Used in Your Work Generally, you can deduct amounts you spend for tools used in your work if the tools wear out and are thrown away within 1 year from the date of purchase. Do active military pay taxes You can depreciate the cost of tools that have a useful life substantially beyond the tax year. Do active military pay taxes For more information about depreciation, see Publication 946. Do active military pay taxes Travel, Transportation, Meals, Entertainment, Gifts, and Local Lodging If you are an employee and have ordinary and necessary business-related expenses for travel away from home, local transportation, entertainment, and gifts, you may be able to deduct these expenses. Do active military pay taxes Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses. Do active military pay taxes Travel expenses. Do active military pay taxes   Travel expenses are those incurred while traveling away from home for your employer. Do active military pay taxes You can deduct travel expenses paid or incurred in connection with a temporary work assignment. Do active military pay taxes Generally, you cannot deduct travel expenses paid or incurred in connection with an indefinite work assignment. Do active military pay taxes   Travel expenses may include: The cost of getting to and from your business destination (air, rail, bus, car, etc. Do active military pay taxes ), Meals and lodging while away from home, Taxi fares, Baggage charges, and Cleaning and laundry expenses. Do active military pay taxes   Travel expenses are discussed more fully in chapter 1 of Publication 463. Do active military pay taxes Temporary work assignment. Do active military pay taxes    If your assignment or job away from home in a single location is realistically expected to last (and does in fact last) for 1 year or less, it is temporary, unless there are facts and circumstances that indicate it is not. Do active military pay taxes Indefinite work assignment. Do active military pay taxes   If your assignment or job away from home in a single location is realistically expected to last for more than 1 year, it is indefinite, whether or not it actually lasts for more than 1 year. Do active military pay taxes If your assignment or job away from home in a single location is realistically expected to last for 1 year or less, but at some later date it is realistically expected to exceed 1 year, it will be treated as temporary (in the absence of facts and circumstances indicating otherwise) until the date that your realistic expectation changes, and it will be treated as indefinite after that date. Do active military pay taxes Federal crime investigation and prosecution. Do active military pay taxes   If you are a federal employee participating in a federal crime investigation or prosecution, you are not subject to the 1-year rule for deducting temporary travel expenses. Do active military pay taxes This means that you may be able to deduct travel expenses even if you are away from your tax home for more than 1 year. Do active military pay taxes   To qualify, the Attorney General must certify that you are traveling: For the Federal Government, In a temporary duty status, and To investigate, prosecute, or provide support services for the investigation or prosecution of a federal crime. Do active military pay taxes Armed Forces reservists traveling more than 100 miles from home. Do active military pay taxes   If you are a member of a reserve component of the Armed Forces of the United States and you travel more than 100 miles away from home in connection with your performance of services as a member of the reserves, you can deduct some of your travel expenses as an adjustment to gross income rather than as a miscellaneous itemized deduction. Do active military pay taxes The amount of expenses you can deduct as an adjustment to gross income is limited to the regular federal per diem rate (for lodging, meals, and incidental expenses) and the standard mileage rate (for car expenses) plus any parking fees, ferry fees, and tolls. Do active military pay taxes The balance, if any, is reported on Schedule A. Do active military pay taxes   You are a member of a reserve component of the Armed Forces of the United States if you are in the Army, Naval, Marine Corps, Air Force, Coast Guard Reserve, the Army National Guard of the United States, the Air National Guard of the United States, or the Reserve Corps of the Public Health Service. Do active military pay taxes   For more information on travel expenses, see Publication 463. Do active military pay taxes Local transportation expenses. Do active military pay taxes   Local transportation expenses are the expenses of getting from one workplace to another when you are not traveling away from home. Do active military pay taxes They include the cost of transportation by air, rail, bus, taxi, and the cost of using your car. Do active military pay taxes   You can choose to use the standard mileage rate to figure your car expenses. Do active military pay taxes The 2013 rate for business use of a vehicle is 56½ cents per mile. Do active military pay taxes    In general, the costs of commuting between your residence and your place of business are nondeductible. Do active military pay taxes Work at two places in a day. Do active military pay taxes   If you work at two places in a day, whether or not for the same employer, you can generally deduct the expenses of getting from one workplace to the other. Do active military pay taxes Temporary work location. Do active military pay taxes   You can deduct expenses incurred in going between your home and a temporary work location if at least one of the following applies. Do active military pay taxes The work location is outside the metropolitan area where you live and normally work. Do active military pay taxes You have at least one regular work location (other than your home) for the same trade or business. Do active military pay taxes (If this applies, the distance between your home and the temporary work location does not matter. Do active military pay taxes )   For this purpose, a work location is generally considered temporary if your work there is realistically expected to last (and does in fact last) for 1 year or less. Do active military pay taxes It is not temporary if your work there is realistically expected to last for more than 1 year, even if it actually lasts for 1 year or less. Do active military pay taxes If your work there initially is realistically expected to last for 1 year or less, but later is realistically expected to last for more than 1 year, the work location is generally considered temporary until the date your realistic expectation changes and not temporary after that date. Do active military pay taxes For more information, see chapter 1 of Publication 463. Do active military pay taxes Home office. Do active military pay taxes   You can deduct expenses incurred in going between your home and a workplace if your home is your principal place of business for the same trade or business. Do active military pay taxes (In this situation, whether the other workplace is temporary or regular and its distance from your home do not matter. Do active military pay taxes ) See Home Office , earlier, for a discussion on the use of your home as your principal place of business. Do active military pay taxes Meals and entertainment. Do active military pay taxes   Generally, you can deduct entertainment expenses (including entertainment-related meals) only if they are directly related to the active conduct of your trade or business. Do active military pay taxes However, the expense only needs to be associated with the active conduct of your trade or business if it directly precedes or follows a substantial and bona fide business-related discussion. Do active military pay taxes   You can deduct only 50% of your business-related meal and entertainment expenses unless the expenses meet certain exceptions. Do active military pay taxes You apply this 50% limit before you apply the 2%-of-adjusted-gross-income limit. Do active military pay taxes Meals when subject to “hours of service” limits. Do active military pay taxes   You can deduct 80% of your business-related meal expenses if you consume the meals during or incident to any period subject to the Department of Transportation's “hours of service” limits. Do active military pay taxes You apply this 80% limit before you apply the 2%-of-adjusted-gross-income limit. Do active military pay taxes Gift expenses. Do active military pay taxes   You can generally deduct up to $25 of business gifts you give to any one individual during the year. Do active military pay taxes The following items do not count toward the $25 limit. Do active military pay taxes Identical, widely distributed items costing $4 or less that have your name clearly and permanently imprinted. Do active military pay taxes Signs, racks, and promotional materials to be displayed on the business premises of the recipient. Do active military pay taxes Local lodging. Do active military pay taxes   If your employer provides or requires you to obtain lodging while you are not traveling away from home, you can deduct the cost of the lodging if it is: on a temporary basis, necessary for you to participate in or be available for a business meeting or employer function, and the costs are ordinary and necessary, but not lavish or extravagant. Do active military pay taxes   If your employer provides the lodging or reimburses you for the cost of the lodging, you can deduct the cost only if the value or the reimbursement is included in your gross income because it is reported as wages on your Form W-2. Do active military pay taxes Additional information. Do active military pay taxes    See Publication 463 for more information on travel, transportation, meal, entertainment, and gift expenses, and reimbursements for these expenses. Do active military pay taxes Union Dues and Expenses You can deduct dues and initiation fees you pay for union membership. Do active military pay taxes You can also deduct assessments for benefit payments to unemployed union members. Do active military pay taxes However, you cannot deduct the part of the assessments or contributions that provides funds for the payment of sick, accident, or death benefits. Do active military pay taxes Also, you cannot deduct contributions to a pension fund even if the union requires you to make the contributions. Do active military pay taxes You may not be able to deduct amounts you pay to the union that are related to certain lobbying and political activities. Do active military pay taxes See Lobbying Expenses under Nondeductible Expenses, later. Do active military pay taxes Work Clothes and Uniforms You can deduct the cost and upkeep of work clothes if the following two requirements are met. Do active military pay taxes You must wear them as a condition of your employment. Do active military pay taxes The clothes are not suitable for everyday wear. Do active military pay taxes It is not enough that you wear distinctive clothing. Do active military pay taxes The clothing must be specifically required by your employer. Do active military pay taxes Nor is it enough that you do not, in fact, wear your work clothes away from work. Do active military pay taxes The clothing must not be suitable for taking the place of your regular clothing. Do active military pay taxes Examples of workers who may be able to deduct the cost and upkeep of work clothes are: delivery workers, firefighters, health care workers, law enforcement officers, letter carriers, professional athletes, and transportation workers (air, rail, bus, etc. Do active military pay taxes ). Do active military pay taxes Musicians and entertainers can deduct the cost of theatrical clothing and accessories that are not suitable for everyday wear. Do active military pay taxes However, work clothing consisting of white cap, white shirt or white jacket, white bib overalls, and standard work shoes, which a painter is required by his union to wear on the job, is not distinctive in character or in the nature of a uniform. Do active military pay taxes Similarly, the costs of buying and maintaining blue work clothes worn by a welder at the request of a foreman are not deductible. Do active military pay taxes Protective clothing. Do active military pay taxes   You can deduct the cost of protective clothing required in your work, such as safety shoes or boots, safety glasses, hard hats, and work gloves. Do active military pay taxes   Examples of workers who may be required to wear safety items are: carpenters, cement workers, chemical workers, electricians, fishing boat crew members, machinists, oil field workers, pipe fitters, steamfitters, and truck drivers. Do active military pay taxes Military uniforms. Do active military pay taxes   You generally cannot deduct the cost of your uniforms if you are on full-time active duty in the armed forces. Do active military pay taxes However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. Do active military pay taxes In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses. Do active military pay taxes   If local military rules do not allow you to wear fatigue uniforms when you are off duty, you can deduct the amount by which the cost of buying and keeping up these uniforms is more than the uniform allowance you receive. Do active military pay taxes   If you are a student at an armed forces academy, you cannot deduct the cost of your uniforms if they replace regular clothing. Do active military pay taxes However, you can deduct the cost of insignia, shoulder boards, and related items. Do active military pay taxes    You can deduct the cost of your uniforms if you are a civilian faculty or staff member of a military school. Do active military pay taxes Work-Related Education You can deduct expenses you have for education, even if the education may lead to a degree, if the education meets at least one of the following two tests. Do active military pay taxes It maintains or improves skills required in your present work. Do active military pay taxes It is required by your employer or the law to keep your salary, status, or job, and the requirement serves a business purpose of your employer. Do active military pay taxes You cannot deduct expenses you have for education, even though one or both of the preceding tests are met, if the education: Is needed to meet the minimum educational requirements to qualify you in your trade or business, or Is part of a program of study that will lead to qualifying you in a new trade or business. Do active military pay taxes If your education qualifies, you can deduct expenses for tuition, books, supplies, laboratory fees, and similar items, and certain transportation costs. Do active military pay taxes If the education qualifies you for a new trade or business, you cannot deduct the educational expenses even if you do not intend to enter that trade or business. Do active military pay taxes Travel as education. Do active military pay taxes   You cannot deduct the cost of travel that in itself constitutes a form of education. Do active military pay taxes For example, a French teacher who travels to France to maintain general familiarity with the French language and culture cannot deduct the cost of the trip as an educational expense. Do active military pay taxes More information. Do active military pay taxes    See Publication 970, Tax Benefits for Education, for a complete discussion of the deduction for work-related education expenses. Do active military pay taxes Education Expenses During Unemployment If you stop working for a year or less in order to get education in order to maintain or improve skills needed in your present work and then return to the same general type of work, your absence is considered temporary. Do active military pay taxes Education that you get during a temporary absence is qualifying work-related education if it maintains or improves skills needed in your present work. Do active military pay taxes Tax Preparation Fees You can usually deduct tax preparation fees on the return for the year in which you pay them. Do active military pay taxes Thus, on your 2013 return, you can deduct fees paid in 2013 for preparing your 2012 return. Do active military pay taxes These fees include the cost of tax preparation software programs and tax publications. Do active military pay taxes They also include any fee you paid for electronic filing of your return. Do active military pay taxes See Tax preparation fees under How To Report, later. Do active military pay taxes Other Expenses You can deduct certain other expenses as miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income limit. Do active military pay taxes On Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9, you can deduct the ordinary and necessary expenses that you pay: To produce or collect income that must be included in your gross income, To manage, conserve, or maintain property held for producing such income, or To determine, contest, pay, or claim a refund of any tax. Do active military pay taxes You can deduct expenses you pay for the purposes in (1) and (2) above only if they are reasonable and closely related to these purposes. Do active military pay taxes These other expenses include the following items. Do active military pay taxes Appraisal fees for a casualty loss or charitable contribution. Do active military pay taxes Casualty and theft losses from property used in performing services as an employee. Do active military pay taxes Clerical help and office rent in caring for investments. Do active military pay taxes Depreciation on home computers used for investments. Do active military pay taxes Excess deductions (including administrative expenses) allowed a beneficiary on termination of an estate or trust. Do active military pay taxes Fees to collect interest and dividends. Do active military pay taxes Hobby expenses, but generally not more than hobby income. Do active military pay taxes Indirect miscellaneous deductions from pass-through entities. Do active military pay taxes Investment fees and expenses. Do active military pay taxes Legal fees related to producing or collecting taxable income or getting tax advice. Do active military pay taxes Loss on deposits in an insolvent or bankrupt financial institution. Do active military pay taxes Loss on traditional IRAs or Roth IRAs, when all amounts have been distributed to you. Do active military pay taxes Repayments of income. Do active military pay taxes Repayments of social security benefits. Do active military pay taxes Safe deposit box rental, except for storing jewelry and other personal effects. Do active military pay taxes Service charges on dividend reinvestment plans. Do active military pay taxes Tax advice fees. Do active military pay taxes Trustee's fees for your IRA, if separately billed and paid. Do active military pay taxes If the expenses you pay produce income that is only partially taxable, see Tax-Exempt Income Expenses, later, under Nondeductible Expenses. Do active military pay taxes Appraisal Fees You can deduct appraisal fees if you pay them to figure a casualty loss or the fair market value of donated property. Do active military pay taxes Casualty and Theft Losses You can deduct a casualty or theft loss as a miscellaneous itemized deduction subject to the 2% limit if you used the damaged or stolen property in performing services as an employee. Do active military pay taxes First report the loss in Section B of Form 4684, Casualties and Thefts. Do active military pay taxes You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Do active military pay taxes To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Do active military pay taxes For more information on casualty and theft losses, see Publication 547, Casualties, Disasters, and Thefts. Do active military pay taxes Clerical Help and Office Rent You can deduct office expenses, such as rent and clerical help, that you have in connection with your investments and collecting the taxable income on them. Do active military pay taxes Credit or Debit Card Convenience Fees You can deduct the convenience fee charged by the card processor for paying your income tax (including estimated tax payments) by credit or debit card. Do active military pay taxes The fees are deductible on the return for the year in which you paid them. Do active military pay taxes For example, fees charged to payments made in 2013 can be claimed on the 2013 tax return. Do active military pay taxes Depreciation on Home Computer You can deduct depreciation on your home computer if you use it to produce income (for example, to manage your investments that produce taxable income). Do active military pay taxes You generally must depreciate the computer using the straight line method over the Alternative Depreciation System (ADS) recovery period. Do active military pay taxes But if you work as an employee and also use the computer in that work, see Depreciation on Computers under Unreimbursed Employee Expenses, earlier. Do active military pay taxes For more information on depreciation, see Publication 946. Do active military pay taxes Excess Deductions of an Estate If an estate's total deductions in its last tax year are more than its gross income for that year, the beneficiaries succeeding to the estate's property can deduct the excess. Do active military pay taxes Do not include deductions for the estate's personal exemption and charitable contributions when figuring the estate's total deductions. Do active military pay taxes The beneficiaries can claim the deduction only for the tax year in which, or with which, the estate terminates, whether the year of termination is a normal year or a short tax year. Do active military pay taxes For more information, see Termination of Estate in Publication 559, Survivors, Executors, and Administrators. Do active military pay taxes Fees To Collect Interest and Dividends You can deduct fees you pay to a broker, bank, trustee, or similar agent to collect your taxable bond interest or dividends on shares of stock. Do active military pay taxes But you cannot deduct a fee you pay to a broker to buy investment property, such as stocks or bonds. Do active military pay taxes You must add the fee to the cost of the property. Do active military pay taxes You cannot deduct the fee you pay to a broker to sell securities. Do active military pay taxes You can use the fee only to figure gain or loss from the sale. Do active military pay taxes See the instructions for Schedule D (Form 1040) for information on how to report the fee. Do active military pay taxes Hobby Expenses You can generally deduct hobby expenses, but only up to the amount of hobby income. Do active military pay taxes A hobby is not a business because it is not carried on to make a profit. Do active military pay taxes See Not-for-Profit Activities in chapter 1 of Publication 535. Do active military pay taxes Indirect Deductions of Pass-Through Entities Pass-through entities include partnerships, S corporations, and mutual funds that are not publicly offered. Do active military pay taxes Deductions of pass-through entities are passed through to the partners or shareholders. Do active military pay taxes The partners or shareholders can deduct their share of passed-through deductions for investment expenses as miscellaneous itemized deductions subject to the 2% limit. Do active military pay taxes Example. Do active military pay taxes You are a member of an investment club that is formed solely to invest in securities. Do active military pay taxes The club is treated as a partnership. Do active military pay taxes The partnership's income is solely from taxable dividends, interest, and gains from sales of securities. Do active military pay taxes In this case, you can deduct your share of the partnership's operating expenses as miscellaneous itemized deductions subject to the 2% limit. Do active military pay taxes However, if the investment club partnership has investments that also produce nontaxable income, you cannot deduct your share of the partnership's expenses that produce the nontaxable income. Do active military pay taxes Publicly offered mutual funds. Do active military pay taxes   Publicly offered mutual funds do not pass deductions for investment expenses through to shareholders. Do active military pay taxes A mutual fund is “publicly offered” if it is: Continuously offered pursuant to a public offering, Regularly traded on an established securities market, or Held by or for at least 500 persons at all times during the tax year. Do active military pay taxes   A publicly offered mutual fund will send you a Form 1099-DIV, Dividends and Distributions, or a substitute form, showing the net amount of dividend income (gross dividends minus investment expenses). Do active military pay taxes This net figure is the amount you report on your return as income. Do active military pay taxes You cannot further deduct investment expenses related to publicly offered mutual funds because they are already included as part of the net income amount. Do active military pay taxes Information returns. Do active military pay taxes   You should receive information returns from pass-through entities. Do active military pay taxes Partnerships and S corporations. Do active military pay taxes   These entities issue Schedule K-1, which lists the items and amounts you must report, and identifies the tax return schedules and lines to use. Do active military pay taxes Nonpublicly offered mutual funds. Do active military pay taxes   These funds will send you a Form 1099-DIV, or a substitute form, showing your share of gross income and investment expenses. Do active military pay taxes You can claim the expenses only as a miscellaneous itemized deduction subject to the 2% limit. Do active military pay taxes Investment Fees and Expenses You can deduct investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income. Do active military pay taxes Legal Expenses You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax. Do active military pay taxes You can also deduct legal expenses that are: Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business, For tax advice related to a divorce if the bill specifies how much is for tax advice and it is determined in a reasonable way, or To collect taxable alimony. Do active military pay taxes You can deduct expenses of resolving tax issues relating to profit or loss from business (Schedule C or C-EZ), rentals or royalties (Schedule E), or farm income and expenses (Schedule F) on the appropriate schedule. Do active military pay taxes You deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040 or Form 1040NR). Do active military pay taxes See Tax Preparation Fees, earlier. Do active military pay taxes Unlawful discrimination claims. Do active military pay taxes   You may be able to deduct, as an adjustment to income on Form 1040, line 36, or Form 1040NR, line 35, rather than as a miscellaneous itemized deduction, attorney fees and court costs for actions settled or decided after October 22, 2004, involving a claim of unlawful discrimination, a claim against the U. Do active military pay taxes S. Do active military pay taxes Government, or a claim made under section 1862(b)(3)(A) of the Social Security Act. Do active military pay taxes However, the amount you can deduct on Form 1040, line 36, or Form 1040NR, line 35, is limited to the amount of the judgment or settlement you are including in income for the tax year. Do active military pay taxes See Publication 525 for more information. Do active military pay taxes Loss on Deposits A loss on deposits can occur when a bank, credit union, or other financial institution becomes insolvent or bankrupt. Do active military pay taxes If you can reasonably estimate the amount of your loss on money you have on deposit in a financial institution that becomes insolvent or bankrupt, you can generally choose to deduct it in the current year even though its exact amount has not been finally determined. Do active military pay taxes If elected, the casualty loss is subject to certain deduction limitations. Do active military pay taxes The election is made on Form 4684. Do active military pay taxes Once you make this choice, you cannot change it without IRS approval. Do active military pay taxes If none of the deposit is federally insured, you can deduct the loss in either of the following ways. Do active military pay taxes As an ordinary loss (as a miscellaneous itemized deduction subject to the 2% limit). Do active military pay taxes Write the name of the financial institution and “Insolvent Financial Institution” beside the amount on Schedule A (Form 1040), line 23, or Schedule A (Form 1040NR), line 9. Do active military pay taxes This deduction is limited to $20,000 ($10,000 if you are married filing separately) for each financial institution, reduced by any expected state insurance proceeds. Do active military pay taxes As a casualty loss. Do active military pay taxes Report it on Form 4684 first and then on Schedule A (Form 1040). Do active military pay taxes See Publication 547 for details. Do active military pay taxes As a nonbusiness bad debt. Do active military pay taxes Report it on Schedule D (Form 1040). Do active military pay taxes If any part of the deposit is federally insured, you can deduct the loss only as a casualty loss. Do active military pay taxes Exception. Do active military pay taxes   You cannot make this choice if you are a 1%-or-more-owner or an officer of the financial institution, or are related to such owner or officer. Do active military pay taxes For a definition of “related,” see Deposit in Insolvent or Bankrupt Financial Institution in chapter 4 of Publication 550. Do active military pay taxes Actual loss different from estimated loss. Do active military pay taxes   If you make this choice and your actual loss is less than your estimated loss, you must include the excess in income. Do active military pay taxes See Recoveries in Publication 525. Do active military pay taxes If your actual loss is more than your estimated loss, treat the excess loss as explained under Choice not made, next. Do active military pay taxes Choice not made. Do active military pay taxes   If you do not make this choice (or if you have an excess actual loss after choosing to deduct your estimated loss), treat your loss (or excess loss) as a nonbusiness bad debt (deductible as a short-term capital loss) in the year its amount is finally determined. Do active military pay taxes See Nonbusiness Bad Debts in chapter 4 of Publication 550. Do active military pay taxes Loss on IRA If you have a loss on your traditional IRA (or Roth IRA) investment, you can deduct the loss as a miscellaneous itemized deduction subject to the 2% limit, but only when all the amounts in all your traditional IRA (or Roth IRA) accounts have been distributed to you and the total distributions are less than your unrecovered basis. Do active military pay taxes For more information, see Publication 590, Individual Retirement Arrangements (IRAs). Do active military pay taxes Repayments of Income If you had to repay an amount that you included in income in an earlier year, you may be able to deduct the amount you repaid. Do active military pay taxes If the amount you had to repay was ordinary income of $3,000 or less, the deduction is subject to the 2% limit. Do active military pay taxes If it was more than $3,000, see Repayments Under Claim of Right under Deductions Not Subject to the 2% Limit, later. Do active military pay taxes Repayments of Social Security Benefits If the total of the amounts in box 5 (net benefits for 2013) of all your Forms SSA-1099, Social Security Benefit Statement, and Forms RRB-1099, Payments By the Railroad Retirement Board, is a negative figure (a figure in parentheses), you may be able to take a miscellaneous itemized deduction subject to the 2% limit. Do active military pay taxes The amount you can deduct is the part of the negative figure that represents an amount you included in gross income in an earlier year. Do active military pay taxes The amount in box 5 of Form SSA-1099 or RRB-1099 is the net amount of your benefits for the year. Do active military pay taxes It will be a negative figure if the amount of benefits you repaid in 2013 (box 4) is more than the gross amount of benefits paid to you in 2013 (box 3). Do active military pay taxes If the deduction is more than $3,000, you will have to use a special computation to figure your tax. Do active military pay taxes See Publication 915, Social Security and Equivalent Railroad Retirement Benefits, for additional information. Do active military pay taxes Safe Deposit Box Rent You can deduct safe deposit box rent if you use the box to store taxable income-producing stocks, bonds, or investment-related papers and documents. Do active military pay taxes You cannot deduct the rent if you use the box only for jewelry, other personal items, or tax-exempt securities. Do active military pay taxes Service Charges on Dividend Reinvestment Plans You can deduct service charges you pay as a subscriber in a dividend reinvestment plan. Do active military pay taxes These service charges include payments for: Holding shares acquired through a plan, Collecting and reinvesting cash dividends, and Keeping individual records and providing detailed statements of accounts. Do active military pay taxes Trustee's Administrative Fees for IRA Trustee's administrative fees that are billed separately and paid by you in connection with your IRA are deductible (if they are ordinary and necessary) as a miscellaneous itemized deduction subject to the 2% limit. Do active military pay taxes Deductions Not Subject to the 2% Limit You can deduct the items listed below as miscellaneous itemized deductions. Do active military pay taxes They are not subject to the 2% limit. Do active military pay taxes Report these items on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14. Do active military pay taxes List of Deductions Amortizable premium on taxable bonds. Do active military pay taxes Casualty and theft losses from income-producing property. Do active military pay taxes Federal estate tax on income in respect of a decedent. Do active military pay taxes Gambling losses up to the amount of gambling winnings. Do active military pay taxes Impairment-related work expenses of persons with disabilities. Do active military pay taxes Loss from other activities from Schedule K-1 (Form 1065-B), box 2. Do active military pay taxes Losses from Ponzi-type investment schemes. Do active military pay taxes Repayments of more than $3,000 under a claim of right. Do active military pay taxes Unrecovered investment in an annuity. Do active military pay taxes Amortizable Premium on Taxable Bonds In general, if the amount you pay for a bond is greater than its stated principal amount, the excess is bond premium. Do active military pay taxes You can elect to amortize the premium on taxable bonds. Do active military pay taxes The amortization of the premium is generally an offset to interest income on the bond rather than a separate deduction item. Do active military pay taxes Pre-1998 election to amortize bond premium. Do active military pay taxes   Generally, if you first elected to amortize bond premium before 1998, the above treatment of the premium does not apply to bonds you acquired before 1988. Do active military pay taxes Bonds acquired after October 22, 1986, and before 1988. Do active military pay taxes   The amortization of the premium on these bonds is investment interest expense subject to the investment interest limit, unless you chose to treat it as an offset to interest income on the bond. Do active military pay taxes Bonds acquired before October 23, 1986. Do active military pay taxes   The amortization of the premium on these bonds is a miscellaneous itemized deduction not subject to the 2% limit. Do active military pay taxes Deduction for excess premium. Do active military pay taxes   On certain bonds (such as bonds that pay a variable rate of interest or that provide for an interest-free period), the amount of bond premium allocable to a period may exceed the amount of stated interest allocable to the period. Do active military pay taxes If this occurs, treat the excess as a miscellaneous itemized deduction that is not subject to the 2% limit. Do active military pay taxes However, the amount deductible is limited to the amount by which your total interest inclusions on the bond in prior periods exceed the total amount you treated as a bond premium deduction on the bond in prior periods. Do active military pay taxes If any of the excess bond premium cannot be deducted because of the limit, this amount is carried forward to the next period and is treated as bond premium allocable to that period. Do active military pay taxes    Pre-1998 choice to amortize bond premium. Do active military pay taxes If you made the choice to amortize the premium on taxable bonds before 1998, you can deduct the bond premium amortization that is more than your interest income only for bonds acquired during 1998 and later years. Do active military pay taxes More information. Do active military pay taxes    For more information on bond premium, see Bond Premium Amortization in chapter 3 of Publication 550. Do active military pay taxes Casualty and Theft Losses of Income-Producing Property You can deduct a casualty or theft loss as a miscellaneous itemized deduction not subject to the 2% limit if the damaged or stolen property was income-producing property (property held for investment, such as stocks, notes, bonds, gold, silver, vacant lots, and works of art). Do active military pay taxes First report the loss in Section B of Form 4684. Do active military pay taxes You may also have to include the loss on Form 4797, Sales of Business Property, if you are otherwise required to file that form. Do active military pay taxes To figure your deduction, add all casualty or theft losses from this type of property included on Form 4684, lines 32 and 38b, or Form 4797, line 18a. Do active military pay taxes For more information on casualty and theft losses, see Publication 547. Do active military pay taxes Federal Estate Tax on Income in Respect of a Decedent You can deduct the federal estate tax attributable to income in respect of a decedent that you as a beneficiary include in your gross income. Do active military pay taxes Income in respect of the decedent is gross income that the decedent would have received had death not occurred and that was not properly includible in the decedent's final income tax return. Do active military pay taxes See Publication 559 for information about figuring the amount of this deduction. Do active military pay taxes Gambling Losses Up to the Amount of Gambling Winnings You must report the full amount of your gambling winnings for the year on Form 1040, line 21. Do active military pay taxes You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. Do active military pay taxes You cannot deduct gambling losses that are more than your winnings. Do active military pay taxes Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR). Do active military pay taxes You cannot reduce your gambling winnings by your gambling losses and report the difference. Do active military pay taxes You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Do active military pay taxes Therefore, your records should show your winnings separately from your losses. Do active military pay taxes Diary of winnings and losses. Do active military pay taxes You must keep an accurate diary or similar record of your losses and winnings. Do active military pay taxes Your diary should contain at least the following information. Do active military pay taxes The date and type of your specific wager or wagering activity. Do active military pay taxes The name and address or location of the gambling establishment. Do active military pay taxes The names of other persons present with you at the gambling establishment. Do active military pay taxes The amount(s) you won or lost. Do active military pay taxes Proof of winnings and losses. Do active military pay taxes   In addition to your diary, you should also have other documentation. Do active military pay taxes You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment. Do active military pay taxes   For specific wagering transactions, you can use the following items to support your winnings and losses. Do active military pay taxes    These recordkeeping suggestions are intended as general guidelines to help you establish your winnings and losses. Do active military pay taxes They are not all-inclusive. Do active military pay taxes Your tax liability depends on your particular facts and circumstances. Do active military pay taxes Keno. Do active military pay taxes   Copies of the keno tickets you purchased that were validated by the gambling establishment, copies of your casino credit records, and copies of your casino check cashing records. Do active military pay taxes Slot machines. Do active military pay taxes   A record of the machine number and all winnings by date and time the machine was played. Do active military pay taxes Table games (twenty-one (blackjack), craps, poker, baccarat, roulette, wheel of fortune, etc. Do active military pay taxes ). Do active military pay taxes   The number of the table at which you were playing. Do active military pay taxes Casino credit card data indicating whether the credit was issued in the pit or at the cashier's cage. Do active military pay taxes Bingo. Do active military pay taxes   A record of the number of games played, cost of tickets purchased, and amounts collected on winning tickets. Do active military pay taxes Supplemental records include any receipts from the casino, parlor, etc. Do active military pay taxes Racing (horse, harness, dog, etc. Do active military pay taxes ). Do active military pay taxes   A record of the races, amounts of wagers, amounts collected on winning tickets, and amounts lost on losing tickets. Do active military pay taxes Supplemental records include unredeemed tickets and payment records from the racetrack. Do active military pay taxes Lotteries. Do active military pay taxes   A record of ticket purchases, dates, winnings, and losses. Do active military pay taxes Supplemental records include unredeemed tickets, payment slips, and winnings statements. Do active military pay taxes Impairment-Related Work Expenses If you have a physical or mental disability that limits your being employed, or substantially limits one or more of your major life activities, such as performing manual tasks, walking, speaking, breathing, learning, and working, you can deduct your impairment-related work expenses. Do active military pay taxes Impairment-related work expenses are ordinary and necessary business expenses for attendant care services at your place of work and other expenses in connection with your place of work that are necessary for you to be able to work. Do active military pay taxes Example. Do active military pay taxes You are blind. Do active military pay taxes You must use a reader to do your work. Do active military pay taxes You use the reader both during your regular working hours at your place of work and outside your regular working hours away from your place of work. Do active military pay taxes The reader's services are only for your work. Do active military pay taxes You can deduct your expenses for the reader as impairment-related work expenses. Do active military pay taxes Self-employed. Do active military pay taxes   If you are self-employed, enter your impairment-related work expenses on the appropriate form (Schedule C, C-EZ, E, or F) used to report your business income and expenses. Do active military pay taxes See Impairment-related work expenses. Do active military pay taxes , later under How To Report. Do active military pay taxes Loss From Other Activities From Schedule K-1 (Form 1065-B), Box 2 If the amount reported in Schedule K-1 (Form 1065-B), box 2, is a loss, report it on Schedule A (Form 1040), line 28, or Schedule A (Form 1040NR), line 14 (only if effectively connected with a U. Do active military pay taxes S. Do active military pay taxes trade or business). Do active military pay taxes It is not subject to the passive activity limitations. Do active military pay taxes Officials Paid on a Fee Basis If you are a fee-basis official, you can claim your expenses in performing services in that job as an adjustment to income rather than as a miscellaneous itemized deduction. Do active military pay taxes See Publication 463 for more information. Do active military pay taxes Performing Artists If you are a qualified performing artist, you can deduct your employee business expenses as an adjustment to income rather than as a miscellaneous itemized deduction. Do active military pay taxes If you are an employee, complete Form 2106 or Form 2106-EZ. Do active military pay taxes See Publication 463 for more information. Do active military pay taxes Losses From Ponzi-type Investment Schemes These losses are deductible as theft losses of income-producing property on your tax return for the year the loss was discovered. Do active military pay taxes You figure the deductible loss in Section B of Form 4684. Do active military pay taxes However, if you qualify to use Revenue Procedure 2009-20 (as modified by Revenue Procedure 2011-58) and you choose to follow the procedures in the guidance, complete Section C of Form 4684 before completing Section B. Do active military pay taxes Section C of Form 4684 replaces Appendix A in Revenue Procedure 2009-20. Do active military pay taxes You do not need to complete Appendix A. Do active military pay taxes See the Form 4684 instructions and Publication 547, Casualties, Disasters, and Thefts, for more information. Do active military pay taxes Repayments Under Claim of Right If you had to repay more than $3,000 that you included in your income in an earlier year because at the time you thought you had an unrestricted right to it, you may be able to deduct the amount you repaid, or take a credit against your tax. Do active military pay taxes See Repayments in Publication 525 for more information. Do active military pay taxes Unrecovered Investment in Annuity A retiree who contributed to the cost of an annuity can exclude from income a part of each payment received as a tax-free return of the retiree's investment. Do active military pay taxes If the retiree dies before the entire investment is recovered tax free, any unrecovered investment can be deducted on the retiree's final income tax return. Do active military pay taxes See Publication 575, Pension and Annuity Income, for more information about the tax treatment of pensions and annuities. Do active military pay taxes Nondeductible Expenses You cannot deduct the following expenses. Do active military pay taxes List of Nondeductible Expenses Adoption expenses. Do active military pay taxes Broker's commissions. Do active military pay taxes Burial or funeral expenses, including the cost of a cemetery lot. Do active military pay taxes Campaign expenses. Do active military pay taxes Capital expenses. Do active military pay taxes Check-writing fees. Do active military pay taxes Club dues. Do active military pay taxes Commuting expenses. Do active military pay taxes Fees and licenses, such as car licenses, marriage licenses, and dog tags. Do active military pay taxes Fines and penalties, such as parking tickets. Do active military pay taxes Health spa expenses. Do active military pay taxes Hobby losses—but see Hobby Expenses, earlier. Do active military pay taxes Home repairs, insurance, and rent. Do active military pay taxes Home security system. Do active military pay taxes Illegal bribes and kickbacks—see Bribes and kickbacks in chapter 11 of Publication 535. Do active military pay taxes Investment-related seminars. Do active military pay taxes Life insurance premiums paid by the insured. Do active military pay taxes Lobbying expenses. Do active military pay taxes Losses from the sale of your home, furniture, personal car, etc. Do active military pay taxes Lost or misplaced cash or property. Do active military pay taxes Lunches with co-workers. Do active military pay taxes Meals while working late. Do active military pay taxes Medical expenses as business expenses other than medical examinations required by your employer. Do active military pay taxes Personal disability insurance premiums. Do active military pay taxes Personal legal expenses. Do active military pay taxes Personal, living, or family expenses. Do active military pay taxes Political contributions. Do active military pay taxes Professional accreditation fees. Do active military pay taxes Professional reputation, expenses to improve. Do active military pay taxes Relief fund contributions. Do active military pay taxes Residential telephone line. Do active military pay taxes Stockholders' meeting, expenses of attending. Do active military pay taxes Tax-exempt income, expenses of earning or collecting. Do active military pay taxes The value of wages never received or lost vacation time. Do active military pay taxes Travel expenses for another individual. Do active military pay taxes Voluntary unemployment benefit fund contributions. Do active military pay taxes Wristwatches. Do active military pay taxes Adoption Expenses You cannot deduct the expenses of adopting a child but you may be able to take a credit for those expenses. Do active military pay taxes For details, see Form 8839, Qualified Adoption Expenses. Do active military pay taxes Commissions Commissions paid on the purchase of securities are not deductible, either as business or nonbusiness expenses. Do active military pay taxes Instead, these fees must be added to the taxpayer's cost of the securities. Do active military pay taxes Commissions paid on the sale are deductible as business expenses only by dealers. Do active military pay taxes Campaign Expenses You cannot deduct campaign expenses of a candidate for any office, even if the candidate is running for reelection to the office. Do active military pay taxes These include qualification and registration fees for primary elections. Do active military pay taxes Legal fees. Do active military pay taxes   You cannot deduct legal fees paid to defend charges that arise from participation in a political campaign. Do active military pay taxes Capital Expenses You cannot currently deduct amounts paid to buy property that has a useful life substantially beyond the tax year or amounts paid to increase the value or prolong the life of property. Do active military pay taxes If you use such property in your work, you may be able to take a depreciation deduction. Do active military pay taxes See Publication 946. Do active military pay taxes If the property is a car used in your work, also see Publication 463. Do active military pay taxes Check-Writing Fees on Personal Account If you have a personal checking account, you cannot deduct fees charged by the bank for the privilege of writing checks, even if the account pays interest. Do active military pay taxes Club Dues Generally, you cannot deduct the cost of membership in any club organized for business, pleasure, recreation, or other social purpose. Do active military pay taxes This includes business, social, athletic, luncheon, sporting, airline, hotel, golf, and country clubs. Do active military pay taxes You cannot deduct dues paid to an organization if one of its main purposes is to: Conduct entertainment activities for members or their guests, or Provide members or their guests with access to entertainment facilities. Do active military pay taxes Dues paid to airline, hotel, and luncheon clubs are not deductible. Do active military pay taxes Commuting Expenses You cannot deduct commuting expenses (the cost of transportation between your home and your main or regular place of work). Do active military pay taxes If you haul tools, instruments, or other items in your car to and from work, you can deduct only the additional cost of hauling the items, such as the rent on a trailer to carry the items. Do active military pay taxes Fines or Penalties You cannot deduct fines or penalties you pay to a governmental unit for violating a law. Do active military pay taxes This includes an amount paid in settlement of your actual or potential liability for a fine or penalty (civil or criminal). Do active military pay taxes Fines or penalties include parking tickets, tax penalties, and penalties deducted from teachers' paychecks after an illegal strike. Do active military pay taxes Health Spa Expenses You cannot deduct health spa expenses, even if there is a job requirement to stay in excellent physical condition, such as might be required of a law enforcement officer. Do active military pay taxes Home Security System You cannot deduct the cost of a home security system as a miscellaneous deduction. Do active military pay taxes However, you may be able to claim a deduction for a home security system as a business expense if you have a home office. Do active military pay taxes See Home Office under Unreimbursed Employee Expenses, earlier, and Publication 587. Do active military pay taxes Investment-Related Seminars You cannot deduct any expenses for attending a convention, seminar, or similar meeting for investment purposes. Do active military pay taxes Life Insurance Premiums You cannot deduct premiums you pay on your life insurance. Do active military pay taxes You may be able to deduct, as alimony, premiums you pay on life insurance policies assigned to your former spouse. Do active military pay taxes See Publication 504, Divorced or Separated Individuals, for information on alimony. Do active military pay taxes Lobbying Expenses You generally cannot deduct amounts paid or incurred for lobbying expenses. Do active military pay taxes These include expenses to: Influence legislation, Participate, or intervene, in any political campaign for, or against, any candidate for public office, Attempt to influence the general public, or segments of the public, about elections, legislative matters, or referendums, or Communicate directly with covered executive branch officials in any attempt to influence the official actions or positions of those officials. Do active military pay taxes Lobbying expenses also include any amounts paid or incurred for research, preparation, planning, or coordination of any of these activities. Do active military pay taxes Covered executive branch official. Do active military pay taxes   A covered executive branch official, for the purpose of (4) above, is any of the following officials. Do active military pay taxes The President. Do active military pay taxes The Vice President. Do active military pay taxes Any officer or employee of the White House Office of the Executive Office of the President, and the two most senior level officers of each of the other agencies in the Executive Office. Do active military pay taxes Any individual serving in a position in Level I of the Executive Schedule under section 5312 of Title 5, United States Code, any other individual designated by the President as having Cabinet-level status, and any immediate deputy of one of these individuals. Do active military pay taxes Dues used for lobbying. Do active military pay taxes   If a tax-exempt organization notifies you that part of the dues or other amounts you pay to the organization are used to pay nondeductible lobbying expenses, you cannot deduct that part. Do active military pay taxes Exceptions. Do active military pay taxes   You can deduct certain lobbying expenses if they are ordinary and necessary expenses of carrying on your trade or business. Do active military pay taxes You can deduct expenses for attempting to influence the legislation of any local council or similar governing body (local legislation). Do active military pay taxes An Indian tribal government is considered a local council or similar governing body. Do active military pay taxes You can deduct in-house expenses for influencing legislation or communicating directly with a covered executive branch official if the expenses for the tax year are not more than $2,000 (not counting overhead expenses). Do active military pay taxes If you are a professional lobbyist, you can deduct the expenses you incur in the trade or business of lobbying on behalf of another person. Do active military pay taxes Payments by the other person to you for lobbying activities cannot be deducted. Do active military pay taxes Lost or Mislaid Cash or Property You cannot deduct a loss based on the mere disappearance of money or property. Do active military pay taxes However, an accidental loss or disappearance of property can qualify as a casualty if it results from an identifiable event that is sudden, unexpected, or unusual. Do active military pay taxes See Publication 547. Do active military pay taxes Example. Do active military pay taxes A car door is accidentally slammed on your hand, breaking the setting of your diamond ring. Do active military pay taxes The diamond falls from the ring and is never found. Do active military pay taxes The loss of the diamond is a casualty. Do active military pay taxes Lunches With Co-workers You cannot deduct the expenses of lunches with co-workers, except while traveling away from home on business. Do active military pay taxes See Publication 463 for information on deductible expenses while traveling away from home. Do active military pay taxes Meals While Working Late You cannot deduct the cost of meals while working late. Do active military pay taxes However, you may be able to claim a deduction if the cost of the meals is a deductible entertainment expense, or if you are traveling away from home. Do active military pay taxes See Publication 463 for information on deductible entertainment expenses and expenses while traveling away from home. Do active military pay taxes Personal Legal Expenses You cannot deduct personal legal expenses such as those for the following. Do active military pay taxes Custody of children. Do active military pay taxes Breach of promise to marry suit. Do active military pay taxes Civil or criminal charges resulting from a personal relationship. Do active military pay taxes Damages for personal injury (except certain whistleblower claims and unlawful discrimination claims). Do active military pay taxes For more information about unlawful discrimination claims, see Deductions Subject to the 2% Limit, earlier. Do active military pay taxes Preparation of a title (or defense or perfection of a title). Do active military pay taxes Preparation of a will. Do active military pay taxes Property claims or property settlement in a divorce. Do active military pay taxes You cannot deduct these expenses even if a result of the legal proceeding is the loss of income-producing property. Do active military pay taxes Political Contributions You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Do active military pay taxes Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible. Do active military pay taxes Professional Accreditation Fees You cannot deduct professional accreditation fees such as the following. Do active military pay taxes Accounting certificate fees paid for the initial right to practice accounting. Do active military pay taxes Bar exam fees and incidental expenses in securing initial admission to the bar. Do active military pay taxes Medical and dental license fees paid to get initial licensing. Do active military pay taxes Professional Reputation You cannot deduct expenses of radio and TV appearances to increase your personal prestige or establish your professional reputation. Do active military pay taxes Relief Fund Contributions You cannot deduct contributions paid to a private plan that pays benefits to any covered employee who cannot work because of any injury or illness not related to the job. Do active military pay taxes Residential Telephone Service You cannot deduct any charge (including taxes) for basic local telephone service for the first telephone line to your residence, even if it is used in a trade or business. Do active military pay taxes Stockholders' Meetings You cannot deduct transportation and other expenses you pay to attend stockholders' meetings of companies in which you own stock but have no other interest. Do active military pay taxes You cannot deduct these expenses even if you are attending the meeting to get information that would be useful in making further investments. Do active military pay taxes Tax-Exempt Income Expenses You cannot deduct expenses to produce tax-exempt income. Do active military pay taxes You cannot deduct interest on a debt incurred or continued to buy or carry tax-exempt securities. Do active military pay taxes If you have expenses to p